How Is a Skimming Policy Different from a Penetration Policy

question 54

Multiple Choice

How is a skimming policy different from a penetration policy?

• A)A skimming policy is used when demand for a product is price inelastic,while a penetration policy is used when demand for a product is price elastic.
• B)A skimming policy is used when a seller wants to charge a relatively low price on a new product,while a penetration policy is used when a seller wants to charge a relatively high price on a new product.
• C)A skimming policy is used to obtain large economies of scale and for the rapid creation of a mass market,while a penetration policy is used to capitalize on a temporary monopoly.
• D)A skimming policy is used to discourage competition,while a penetration policy is used to obtain maximum revenue from the market before substitute products are created.

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Definitions:

Mildred Parten

A researcher known for her work on the social development and play stages of children, categorizing the ways in which children play as they grow.

Onlooker Play

A stage of play where a child watches others play but does not engage directly, serving as a form of learning social cues and interactions.

Formal Play

Structured play activities that are governed by rules and often involve goals or objectives, contrasting with spontaneous or free play.

Associative Play

A stage of play primarily observed in young children, where they play in parallel to each other but engage in group activities, sharing and talking.